Bitcoin continues to bounce on top of the $3,400 support (on Coinbase). Volume has been declining over the past 48 hours.
Zooming out on the weekly chart, we get much better perspective on just how bearish this overall trend has been. Price broke below the $3,600 support. When it tried to break back above, $3,600 began to act as a strong resistance. The weekly chart suggests price may retest the prior low of $3,130 (on Coinbase). I’m not saying it will, but it’s a very real possibility. I discuss this much more, as well as the bullish scenario, in my video analysis at the bottom.
Looking at the 4 hour chart, we can see the Bollinger bands constricting while the 8, 21 and 55 day EMA’s converge with the 50 day MA. This would suggest a larger move is coming.
As of writing this post, long positions are stacking while shorts are falling off. If this continues, market makers will likely drive price down to liquidate longs. This low volume market makes manipulation fairly easy.
In today’s video analysis I discuss, where price may be heading next, market psychology, key areas to watch and so much more. I hope you find it helpful.
I hope this has been helpful. I’d be happy to answer any questions in the comment section below. Until next time, wishing you safe and profitable trading!